Our Caregiver's Escort Service

There are two ways to find and hire a caregiver – by word-of-mouth or through an agency.  Word-of-mouth, or a personal referral, is used for finding a private caregiver.

There are plenty of private caregivers out there who work independently and not for an agency.  They often work for someone for years, then when that person passes away, they’re out looking for work again.

They can be found through friends, who recommend someone they once used, or maybe even through another caregiver, who might have a friend looking for extra work.  Some advertise their availability on community e-mail lists, or through postings on a local service organization’s web site.

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Private Caregivers versus Agency Caregivers

Hiring a private caregiver on your own might sound easy, but there are pitfalls to avoid.

First, you’re completely on your own to pay them.  You pay them directly, whether through a transfer to their bank account, if they have one, or in cold hard cash, if they don’t, which happens often.  Legally, they’re independent contractors, not employees, so they’re responsible for covering their own insurance and taxes, for example. 

We’ve known people who just pay their caregivers cash under the table and don’t keep records.  This is a mistake.

Even if your caregiver only wants cash to avoid declaring anything on their taxes, you should still keep payment records and issue them a 1099 at the end of the year.  It’s their responsibility to file and pay their taxes.  If they don’t, they could get in trouble with the IRS, who then might turn around and knock on your door to ask you to verify the caregiver’s income.  Those checking account statements showing payments to the caregiver could be a lifesaver.

My father, who was an accountant and CPA, kept complete records for every caregiver he hired for my mother.  He made sure 1099s were filed every year.  After he died, the IRS contacted us once when they found an error in a 1099.  It turned out to be a small typo.  Fortunately, we had his paperwork with the correct information and filed it with a correction.  We were able to close the case quickly without incident or penalties.  The lesson is that the IRS is still out there and can still find you, even if you’re paying your caregiver cash.

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It’s also up to you to do a background check on any prospective caregiver.  You don’t have to hire a private detective.  A background check could be as simple as checking for credentials online.  State agencies licensing, or certifying, caregivers often have ways to verify caregivers online.

Does this person have a license, or a certificate, required for caregivers in your state?  Are there any complaints on file?  Does this person have a police record, or any criminal convictions?

Ask for references and call them.  If they run their service as a business and advertise through a web site or social media, like Facebook, or even LinkedIn, for example, check their reviews.  Public sources are better, since references could be friends who were told to give five-star reviews if someone calls them.

You don’t want to let someone dangerous, or who is a convicted thief or an ax murderer, in your house, let alone caring for your elderly parents.

On the other hand, agencies do, or are supposed to do, all the checks for you.  They also handle paying the caregiver, sending them 1099s for taxes and are bonded and insured.  You pay the agency, not the caregiver directly, and they take care of the rest.  If you don’t like the caregiver, or the caregiver isn’t doing the job, you just call the agency to get a replacement.

Agencies may also provide training for their caregivers to make sure they meet minimum professional standards.  They may also have managers to supervise teams of their caregivers.  Check if the agency provides these types of additional services.  This is a plus.

Excerpts from Heaven Isn’t On Schedule by Joel Dubin

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